• Silvergate Bank received a $4.3 billion bailout from the Federal Home Loan Bank following the collapse of crypto exchange FTX.
• Withdrawals from Silvergate spiked and its deposits fell by $3.8 billion at the end of 2022 due to FTX collapse.
• Silvergate had limited exposure to FTX and BlockFi, with their deposits accounting for less than 10% and $20 million, respectively.

Silvergate Bank, a San Francisco-based financial institution that provides banking services to crypto exchanges and investors, was in a precarious situation after the collapse of crypto exchange FTX. With 90% of the bank’s deposits coming from crypto, withdrawals from Silvergate spiked and its deposits fell by $3.8 billion at the end of 2022.

In order to protect the bank from further losses, the Federal Home Loan Bank provided Silvergate with a $4.3 billion bailout. Silvergate CEO, Alan Lane, later reported that the firm had less than 10% exposure to FTX as of September 30. Moreover, according to reports, BlockFi deposits accounted for less than $20 million of the bank’s total deposits.

This news of the bailout came as a relief to Silvergate customers, who had been worried that the bank was exposed to bankrupt crypto lender BlockFi. Despite the relief, $8.1 billion worth of digital assets were withdrawn from the bank by December 2022.

In response, Silvergate worked to reduce its risk from FTX, limiting their deposits to less than 10%. They also made sure to limit their exposure to BlockFi, with their deposits accounting for less than $20 million of their total deposits.

Silvergate’s 10 biggest depositors, including Coinbase, Paxos, Crypto.com, Gemini, Kraken, Bitstamp, and Circle, represented about half of the bank’s deposits. The bank is now looking to strengthen its financial position and restore confidence in its services.

The $4.3 billion bailout has provided Silvergate with some breathing room, allowing the bank to continue its operations and provide valuable services to its customers. Silvergate will continue to monitor the market and take the necessary steps to protect its customers and maintain its financial health.

• Robinhood will delist Bitcoin SV (BSV) and sell any BSV held on the platform after the deadline at market value.
• The change comes as a part of Robinhood’s routine review of its crypto products, meaning BSV will continue to be tradeable on the app until the deadline.
• The price of BSV opened on Jan. 11 at $44.95 but has fallen 16.97% as of press time to $37.29.

Robinhood, the popular stock and crypto trading app, recently announced that it will be delisting Craig Wright’s Bitcoin SV (BSV) on Jan. 25. The move is part of their routine review of its crypto products, so BSV will remain tradeable on the app until the deadline. After that, any BSV held on the platform by customers will be „sold at market value and credited to their Robinhood buying power.”

The Robinhood spokesperson further noted that investors residing in Hawaii, Nevada, and New York have limited capabilities to trade BSV. They added that “we have a rigorous framework in place to help us regularly review the crypto we offer… No other coins are affected by this change and all of our customers‘ crypto remains safe on Robinhood. We are extremely selective about the assets we offer…“

At the time of writing, the price of BSV opened on Jan. 11 at $44.95 but has fallen 16.97% to $37.29. Bitcoin is also experiencing a ‚red day‘ with the flagship crypto dropping 0.91%. However, the price decline for Bitcoin is still well above the $17,000 mark as the retracement failed to mirror the losses of BSV.

Bitcoin SV is a hard fork of Bitcoin Cash (BCH), created in November 2018 following a disagreement between BCH developers over the network’s future. Craig Wright, the Australian entrepreneur who claims to be Satoshi Nakamoto, created the hard fork and has become the figurehead for the project.

The decision by Robinhood is the latest development in a string of delistings for BSV. Major crypto exchanges, such as Binance and Kraken, have also delisted the asset since April of 2020. Last May, ShapeShift also removed the asset, citing its “controversial history and associations with malicious activity.“

Regardless, the delisting of BSV is sure to raise questions in the crypto community, namely if other crypto assets will be next on the chopping block. For now, it looks like only Robinhood’s customers will have to make any changes to their holdings.